In Massachusetts, home insurance is not compulsory as is auto insurance. Since carriers are not required to write homeowner coverage they are able to set their own guidelines for the types of homes and insureds they want to write. They set their maximums and minimums for dwelling coverage. They have set coastal distance requirements and most now have hurricane deductibles based on coastal proximity. They also all now run CLUE reports or insurance scores for potential insureds. This provides them with the claims history for both the insured and the location, credit scores, and payment history for the prospective insureds. These reports are run in most other states for auto insurance as well, but this is not yet done in Massachusetts. Most insurers are now also doing inspections of the homes they insure. This is actually in the best interest of the insureds as it ensures that agents are providing adequate coverage for homes which are usually an insured’s biggest asset. As you can see, the underwriting of homeowner coverage is very involved and details are extremely important.
Contact us with any questions on homeowner insurance, and check out our HO3 vs HO5 and DP3 vs HO3 pages to learn more about your home insurance options.